The euro is recovering against the dollar, after having pierced the threshold of $ 1.19, thanks to the buy that poured into the greenback following the words of James Bullard, president of the St Louis Fed, last Friday.
The Dollar Index jumped to 92.405 during that session, the record since last April 13th.
But now the pace is slowing, with the euro-dollar ratio advancing 0.20% to $ 1.1885.
Also recovering is the pound, up 0.6% to $ 1.3877 after sinking more than 2% against the greenback last week.
Investors await the speeches that will be made this week by several members of the Fed: in the foreground again the president of the St. Louis Fed James Bullard, who has caused so much turmoil in the markets with his statements, and who will speak on the day of today.
Also spotlight on the Bank of England, which will meet this week.
The UK central bank is also making headlines over the resignation of chief economist Andy Haldane, who is preparing to leave the institution after 32 years of service.
In recent days, Haldane has argued that the UK is experiencing the “most dangerous time” in its history in containing inflationary risks, since it exited the European exchange rate mechanism in 1992.
The economist spoke of a “beast of inflation”, warning that the UK economy risks “an upward spiral in wages and prices similar to that of the 70s and 80s”.
Haldane will leave the Bank of England following this week’s meeting of the Bank of England’s Monetary Policy Committee (MPC) on Thursday 24 June.
For now, no changes are expected from the BOE, despite the jump in the consumer price index – the inflation thermometer -, which in May flew to 2.1%, above the central bank’s target threshold, equal to to 2%, for the first time in nearly two years.
Returning to the dollar, the Dollar Index jumped nearly 2% on a weekly basis last week, reporting the strongest rally in around 14 months.
The US currency first priced the more hawkish tones of the FOMC, the monetary policy arm of the Fed, which now expects on average two hikes in fed funds rates by 2023, when at the meeting last March it had estimated no hike until at least. to 2024.
The dollar then received another bullish boost last Friday, with the sudden statement by St. Louis Fed chairman James Bullard, who said he saw an early interest rate hike as early as 2022 as inflation increases faster than previously expected.